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Dizzy heights

With £40,000 you could buy a dozen Chanel bags, pay a trainee firefighter’s wages for almost two years, or rent a super prime London home for a week.

According to a new report, high-end short lets are booming, with wealthy overseas visitors spending tens of thousands of pounds renting a flat for a few weeks instead of taking a hotel suite. Those with a large entourage in tow opt for large houses.

According to Aston Chase, private properties are seen as a more discreet, secure option than luxury hotels. Landlords routinely add a 50 per cent premium on the rent for short lets. The firm recently let a house on Hamilton Terrace, the premier street in St John’s Wood, for £40,000 per week, while Kinleigh Folkard & Hayward is offering a six-bedroom penthouse overlooking Hyde Park in Knightsbridge for the same price. Most short letters stay for between one and three weeks.

The majority of Aston Chase’s super prime short-term tenants are tourists, with around 20 per cent in London on business. Most hail from the Middle East (Saudi Arabia and Qatar), China and America. “A key factor is the strength of other economies especially non-EU zones such as Asia,” explains Mark Pollack, a director at Aston Chase. “Those individuals who have accumulated great wealth and thus have substantial amounts of disposable income appear more willing to pay the premiums associated with short lets for the privilege of occupying a private home as opposed to the more transient environment of a hotel or serviced apartment.”

At the very top end of the short let market you will find a five-bedroom duplex on Duchess of Bedfords Walk, just off Kensington High Street, yours for £22,500pw with Hamptons International. For £12,000pw, you could opt for a five-bedroom apartment on Buckingham Gate, almost overlooking Buckingham Palace, marketed by Dexters.

In January this year, Amelia Redington, head of corporate services and short lets at Jackson- Stops, set up a dedicated department to cater to the rising demand for short lets. Her clients range from those seconded to work in the capital, actors on location and tourists. Expectations are high. “The majority of the rentals at this level are five-star luxury apartments, with maid or concierge services and with the use of in-house or nearby gym facilities,” she says.

The landlords Redington works with are “professional” landlords, often with several properties, hotels which have carved out serviced apartments and regular homeowners. “A lot of short-term lets are off market,” she explains. “We have people who say, ‘If you find the right person I will just disappear on holiday for a few weeks’,” she says. “They are often self-employed and can work anywhere, or can afford to just take the time off.”

But Pollack cautions that not every home will make the grade: “Renters at this level demand immaculately presented interiors with no expense spared and every conceivable amenity. On a recent very high-end short let we completed, the bed throws alone cost almost £10,000 each.”

Beyond the rarefied world of super prime short lets, Knight Frank reports that recent tax changes have served to reduce the supply of rental property in central London. David Mumby, regional partner for lettings, believes this is pushing rents upward for the first time in more than two years. He expects new proposals to introduce minimum three-year tenancy agreements to exacerbate the situation.